The Cardano (ADA) price is near the demand zone of the $0.4000 mark, displaying bearishness on the charts. For weeks, the ADA coin faced selling pressure and failed to sustain gains.
Amidst the broader market correction, the Cardano coin has corrected over 30% in the last month and trades below the key moving averages.
Still, the key on-chain metrics favor the downside and suggest another selloff that may soon be triggered. If the bearish wave continues, the coin may soon retest to the low mark of $0.4000.
At press time, the ADA traded at $0.4302 with an intraday drop of 1.59%, reflecting bearishness on the charts. It has a monthly return ratio of -25.30% and 28.30% yearly.
The pair of ADA/BTC is at 0.00000718 BTC, and the market cap is $16.15 Billion. Analysts are bearish and suggest that ADA may extend the correction and will retest the $0.4000 mark soon.
Has Cardano (ADA) made Bottom or Further Decline Possible?
Per the daily charts of the Cardano (ADA), follow-on retracement price action led the price to reach its 52-week low region. A break and close above the $0.5000 mark would only change the trend ahead.
Source: Santiment
Meanwhile, the trading volume replicated lower investor activity and remained flat for weeks. This week, the trading volume dropped over 39.45% to $174.04 Million, displaying a decline in the buying volume.
The Momentum Indicator (Relative Strength Index) curve stayed in the oversold region, and a negative crossover was noted on the charts.
Slippage In Volatility & Weighted Sentiment Data
Amidst the slow & steady price movement throughout the week, the price volatility showcased a sudden drop and dragged over 18% to 0.00639.
Source:Santiment
A sharp fall in the total weighted sentiment was noted recently, signifying that investors preferred other altcoins to Cardano because of the high beta growth.
Cardano Community On Long-Term Development
A recent tweet by @Its_Dave ADA on X, highlights community growth over the past few months. With a large passionate community, even if Cardano may not look bullish for the short term, over the long-term, it may gain pace soon.
Cardano has such a large passionate community that turn up day in day out.
— Dave (@ItsDave_ADA) May 11, 2024
Know that, by excluding Cardano even for a financial incentive or business decision.
You are excluding one of, maybe even largest crypto community that spans across other blockchains. The audience is…
Source: X
The immediate support levels for the ADA are $0.4200 and $0.4000, whereas the critical upside hurdle is around $0.4500, followed by $0.4800
Conclusion
ADA price might continue to dwell gains and deliver further selloffs in the next sessions. Still, the buyers could not have resisted the selloff, and signs of corrections are glimpsing on the cards.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
